How Would You Handle an Interest Rate Increase?

A new survey by Ipsos in Canada shows a majority of Canadians would be concerned about their ability to pay their debts if the current interest rates rise.

The Bank of Canada is expected to make an interest rate announcement tomorrow (April 12, 2017).

Ahead of the announcement, Ipsos polled Canadians to find out how they would handle a rate increase.

Half (52%) of Canadians agree (21% strongly / 31% somewhat) they’ll be more concerned about their ability to pay their debts than they currently are if interest rates rise. Financial insolvency is a real worry for some, with just over one in three (35%, down 3 points from September 2016) agreeing they’re concerned that rising interest rates could move them towards bankruptcy (12% strongly / 24% somewhat).

The survey was conducted on behalf of MNP Debt and also asked Canadians how they would react to a rate decrease, and also did a comparison of Canadians in different regions of the country.